Indian Man Turns Rp1 Million into Rp95 Trillion: Here's How

Success and wealth are not as easy as turning the palm of a hand. They require effort, knowledge, and strategy to achieve. This is exemplified by an Indian investor who successfully turned a few hundred thousand into trillions of rupiah.

Rakesh Jhunjhunwala is known as the ‘Warren Buffett of India’. According to Traders Brain India, his initial investment capital was only around Rp1 million. His success story has become a public highlight. He is now recorded as having a net worth of US$5.8 billion, or more than Rp95 trillion (at an exchange rate of Rp16,500).

The man, born on 5 July 1960 in Mumbai, was inspired while accompanying his father to work. His father was an income tax officer. Rakesh Jhunjhunwala often heard his father discussing the stock market with his friends.

Due to his high curiosity about stocks, one day he asked his father why stock prices fluctuated every day.

His father suggested that he read the newspaper, as news is what causes stock prices to fluctuate.

Rakesh Jhunjhunwala also expressed his desire to pursue a career in the stock market. However, his father advised him to first obtain a bachelor’s degree from a university.

Rakesh Jhunjhunwala graduated from Sydenham College in 1985 as a chartered accountant. After graduating, he revisited his goal of becoming a stock market investor with his father.

In response, his father said he was allowed to pursue any career. However, his father added that he would not provide money, and Rakesh should not ask for initial capital from his father’s friends.

Rakesh Jhunjhunwala entered the stock market with an initial capital of only Rp975,000 in 1985. At that time, the Sensex index was at 150 points (currently, the Sensex is around 58,500 points).

However, not long after, Rakesh Jhunjhunwala managed to obtain Rp487,500,000 from one of his relative’s clients, with a promise to provide a higher return than fixed deposits.

Rakesh Jhunjhunwala’s first major profit was Rp97,500,000 in 1986. He bought 5,000 shares of Tata Tea for Rp8,385, and within three months, the shares were trading at Rp27,885. He achieved a profit of more than three times by selling those Tata Tea shares.

While Jhunjhunwala has always been cautious in supporting new-era startups, in recent years, he has begun to reap significant profits from a series of private equity investments as those companies went public.

For example, his 14% stake in footwear retailer Metro Brands, which went public last December, made its owner Rafique Malik a billionaire and is now worth more than US$400 million.

He was also an early backer of gaming company Nazara Technologies and general insurer Star Health and Allied Insurance Company, both of which listed last year.

In a move considered risky by many, Jhunjhunwala’s latest bet is on a sector hit by Covid-19: aviation.

Last year, he invested $35 million for a 40% stake in low-cost carrier Akasa, which made its maiden flight earlier this month, launched by the country’s aviation minister and with its famous investors on board.

With a taste for single malt and cigars, Jhunjhunwala likes to live like a king. He is reportedly building a luxurious 13-storey house in south Mumbai as his new home. As a Bollywood film enthusiast, Jhunjhunwala financed several films such as English Vinglish and Ki & Ka.

At the same time, Jhunjhunwala is among the country’s renowned philanthropists with a foundation named after him, and a few years ago, he said he wanted to donate 25% of his wealth during his lifetime.

He is one of the founders and trustees of Ashoka University, a liberal arts school, and a regular donor to the Agastya International Foundation, which provides science education to the poor.

Ashoka University, in a statement, described Jhunjhunwala as one of its largest donors and said he was scheduled to visit the university at the end of this year to launch the Rakesh Jhunjhunwala School of Economics and Finance.

Jhunjhunwala was reported to have died in August 2022 at a hospital in Mumbai city. The hospital stated that the cause of death was a ‘sudden heart attack’.